In 1888, the Qing Dynasty governor of Taiwan, Liu Ming-chuan, founded the Xingshi Company in Taipei. The company supplied electricity for lighting with a small, coal-fired steam generator. Although the firm only lasted for a month, it was the start of the electricity industry in Taiwan.

Later, during the Japanese era, a power plant was completed in Guishan in 1905. This was the beginning of hydropower generation in Taiwan. Over time, development continued, eventually leading to the establishment of the Taiwan Electric Power Co., Ltd. in 1919. Several major projects were completed during this period, including the Sun Moon Lake hydropower project and the construction of a transmission line in western Taiwan that connected the north of the island with the south. By 1944, the total installed power capacity of Taiwan had reached 321 megawatts (MW). Since 1945, the government has consistently furthered the development of the electricity industry in Taiwan. The resulting evolution of the industry can be divided into several periods:

1. Reconstruction (1945-1953) – Mainly based on hydro

During the Second World War, Taiwan's industry and infrastructure sustained significant damage. In the period immediately following the war, tremendous effort was committed to repairing and reconstructing the island's economic and infrastructural capacity. During this period, Taipower was formally established (on May 1, 1946), and by 1953, Taiwan’s installed capacity had reached 363 MW. This was composed of primarily hydro (93.7%) and thermal (6.3%) power generation. The power system of this period was primarily characterized as being mainly based on hydro."

2. Expansion (1954-1965) –Equal Emphasis on Hydro and Thermal Power

By 1962, thermal power generation had proportionally exceeded hydropower. This marked the beginning of a period in which equal emphasis was placed on hydro and thermal power.

3. Highly-Developed (1966-1974) – Mainly Based on Thermal Power, Partially Based on Hydro

After the mid-1960s, Taiwan's industry quickly blossomed, and power consumption increased sharply. Taipower developed the necessary large-scale capacity through the development of high-efficiency thermal power. During this time, the electricity system had entered a period of being mainly based on thermal power and partially based on hydro. Within the power transmission and substation systems, a 345 kV ultra-high voltage transmission line with a total length of 330 circuit kilometers was completed to improve transmission capacity and stabilize the power supply.

4. Nuclear Power (1975-1985) – Energy Diversification

During the 1970's a series of oil crises significantly increased the cost of fuel. In response, the government's energy policy shifted in 1974 and again in 1980 to a focus on diversified sources of power generation. Nuclear power generation was promoted, and three nuclear power plants were completed by 1985. During this period, the installed capacity reached 5144 MW. With the addition of both nuclear power plants and additional, large-capacity, high-efficiency thermal power units, the power system entered a period of energy diversification."

5. Balancing Power Supply and Demand (1986-1993) – Demand-Side Management

As economic growth continued, Taipower faced a diminishing reserve capacity. This led to a period (1986 - 1990) of building large-scale, thermal, and hydro plants, implementing time of use rates, interruptible power, energy conservation, and encouraging cogeneration. To balance power supply and demand, the power system entered a period of demand-side management.

6. Open Power Generation (1994-2000) – Opening Power Generation to Private Enterprises

Since the 1990s, global electricity markets have gradually trended towards liberalization. Throughout this period, Taiwan’s high population density and ongoing economic development led to a rapid growth in power consumption. To accelerate the rate of power development, the government explored market liberalization and subsequently permitted the establishment of Independent Power Producers (IPPs). With the introduction of these private enterprises to the power generation market, Taiwan entered a period of open power generation.

7. Power Grid Expansion (2001-2008)

To meet this period’s economic development challenges and increasing power demand, Taipower continuously built substations and transmission and distribution lines at various levels. To ensure a sufficient and stable power supply, the Sixth Transmission Line and Substation Project was launched in 2001, with a budget exceeding NT$300 billion. Additionally, the Fifth Power Distribution Project expanded distribution lines and upgraded transformers. These projects not only improved system reliability and stability, but also ensured the electricity needs of industry were met while laying a sturdy foundation for future smart and resilient grid development.

8. Renewable Energy Development (2009-2016)

To enhance energy independence and diversification while reducing greenhouse gas emissions, Taiwan’s government enacted a Renewable Energy Development Act in 2009. The law established a fund, provided subsidies, and ensured fair returns to incentivize the installation of renewable energy equipment, thereby marking a significant milestone in Taiwan’s renewable energy development. Taipower, for its part, actively promoted renewable energy by pursuing onshore wind and solar projects. Through these efforts, a total installed green-energy capacity of over 300 MW was subsequently achieved.

9. Accelerated Energy Transition (2017-2020)

To address public concerns about air quality and to comply with government policies, Taipower focused on increasing its use of natural gas and reducing coal-fired generated energy. Starting in 2017, thermal power plants began implementing load reduction measures in response to air quality alerts. In 2019, an environmental shutdown mechanism was established, enabling environmental dispatching while maintaining the stability of the power supply. Through this initiative, some coal-fired units were completely shut down, and for the first time, the annual share of energy produced by gas-fired units exceeded that of coal-fired units. During this period, the upgrading and expansion of gas-fired units continued at the Tunghsiao, Datan, Hsinta, and Taichung power plants, with a total planned installed capacity exceeding 12,000 MW.

Additional amendments were made to the Renewable Energy Development Act in 2019 that set an installed capacity target of 27,000 MW by 2025. In adherence to this policy, Taipower accelerated renewable energy development and initiated offshore wind power projects, while laying the groundwork for prioritizing green energy dispatching and deploying mechanisms that ensure priority access for green power.

10. Toward Net-Zero Transition (2021-Present)

On April 22, 2021 (Earth Day), Taiwan’s government announced a goal of achieving net-zero emissions by 2050. Since 90% of Taiwan's carbon emissions come from energy consumption, the burden of effectively achieving net-zero in the power system while ensuring a stable power supply has emerged as a crucial challenge for Taipower. As a result, the Company continues to expand its wind and solar power and is exploring geothermal, ocean, and hydrogen energy as key potential sources of power generation.

To accommodate the increasing proportion of renewable energy, Taipower is also installing energy storage systems, promoting distributed grid projects, and implementing a Grid Resilience Enhancement Construction Plan. This paradigm shift has had profound impacts on Taipower's sustainable development that requires sequential adjustments to both power generation and grid structures.

 

As a state-owned enterprise, Taipower must provide reliable power and be eco-friendly while implementing national energy policies that meet business and household needs. To achieve these requirements, Taipower manages the development of green energy, the reduction of carbon emissions and the saving of energy while ensuring sustainability in line with recent amendments to Electricity Act. This means that in the future, the company will not only serve as a power provider, but will also have a variety of other responsibilities.

To face these multiple challenges, Taipower is gradually strengthening its capabilities in different fields. It is also seeking to assume key roles in the energy industry by serving as a provider of high-quality power services, integrating energy networks, promoting the adoption of smart living, acting as an agent of environmental friendliness, and practicing corporate social responsibility. The main points involved in each of these roles are as follows:

Provider of High-Quality Power Services

1. Build a stable and efficient power supply system to enhance supply reliability
2. Strengthen customer relationship management and improve the level of customer satisfaction
3. Improve system and data transmission through the construction of an optical fiber network that will accelerate system response capabilities
4. Strengthen asset management through the utilization of Internet of Things (IoT) Architecture and big data analytics
5. Build a smart grid that features self-monitoring, diagnosis, protection, and recovery functions

Integrator of Energy Networks

1. Integrate smart energy resource networks and transaction platforms to effectively balance energy supply and demand
2. Strengthen partnerships between development, engineering, operations management, IPPs, and supply chains for various types of power resources
3. Ensure the security of the fuel supply, enhance coal procurement performance, and transition toward a natural gas supply
4. Enhance power generation efficiency and construct business models for energy resource recycling
5. Deploy distributed power generation and energy storage systems and implement demand-side management through smart grids
6. Promote corporate transformation and establish a global energy conglomerate whose core competitive advantage is its energy network

Adopter of Smart Living

1. Satisfy customers' diverse electricity needs by making use of new technologies to provide positive and personalized services
2. Combine the smart grid with smart home appliances and buildings to enhance convenience and the quality of life for the general public
3. Use smart meters and big data to understand customer behavior in electricity consumption; provide value-added services so that customers can apply smart technology when using electricity, thus achieving energy conservation and carbon reduction
4. Combine smart family energy management systems with various approaches to demand-side electricity management and increase the effectiveness of electricity consumption

Agent of Environmental Friendliness

1. Develop renewable energy and improve the safety of grid connections for renewable energy
2. Establish an attitude of sustainability and attach importance to ecological conservation to implement environmentally friendly policies
3. Increase the share of low-carbon power generation and dedicate ourselves to the reduction of carbon consumption and emissions, thereby gradually transforming into a green enterprise
4. Encourage energy conservation and promote electricity consumption efficiency
5. Strengthen the security of nuclear power plant decommissioning and the final disposal of spent nuclear fuel & low-level radioactive waste

Practitioner of Corporate Social Responsibility

1. Emphasize corporate governance and the shaping of corporate ethics
2. Promote corporate humanistic culture, deepen social care, and create a community of co-prosperity
3. Establish a proactive, mutually caring, and discipline-oriented industrial safety culture
4. Establish diverse communication channels to build trust and develop win-win relationships between Taipower and the general public